The Singapore banking system has “insignificant exposures” to the failed US banks, Silicon Valley Bank (SVB) and Signature Bank, says the Monetary Authority of Singapore (MAS) on March 13.
SVB was closed by Californian regulators on March 10 while Signature Bank was closed by New York regulators on March 12.
In its statement, MAS adds that the banking system in Singapore remains “sound and resilient” amid the heightened volatility in the global financial markets after the closure of both banks. The Singapore dollar (SGD) money market and foreign exchange (forex) markets are also continuing to “function well,” says the central bank.
In addition, MAS says that banks in Singapore are “well-capitalised” and that they “conduct regular stress tests against interest rate and other risks”.
“Their liquidity positions are healthy, underpinned by a stable and diversified funding base. These factors will allow them to weather potential stresses from global financial developments,” reads the statement.
“MAS is closely monitoring the domestic financial system and international developments. MAS stands ready to provide liquidity through its suite of facilities to ensure that Singapore’s financial system remains stable and financial markets continue to function in an orderly manner,” it adds.
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Finally, MAS says it is in touch with Enterprise Singapore to see if there is any potential impact on the international developments of Singapore start-ups, including those with any operations in the US.
“The initial feedback indicates that the impact is limited. MAS and other government agencies will continue to monitor the situation closely for any signs of stress,” continues the statement.
“DBS has no exposure to Silicon Valley Bank, Signature Bank and Silvergate Bank," says a spokesperson from DBS, who highlighted the bank's "very strong liquidity" and "diversified funding base that is supported by a solid retail customer deposit franchise".
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"As can be seen from our recent financial results, our loan book benefits from rising interest rates; while our debt securities portfolio has a relatively short duration. Our loan exposure to startups is immaterial," he adds, noting that DBS is "highly capitalised with a Common Equity Tier 1 (CET1) ratio of 14.6%, well above the regulatory minimum".
Koh Ching Ching, OCBC's head of group brand and communications, says the bank does not have any exposure to SVB, Signature Bank and Silvergate Bank.
"UOB has no direct exposure to Silvergate Bank, Silicon Valley Bank and Signature Bank. We are a domestic systemically important bank in Singapore with a sizeable and diversified deposits base," says a spokesperson at UOB.
"Our securities portfolio are short duration and highly liquid and repurchase eligible. The above attributes are reflected by our strong liquidity ratios, with liquidity coverage ratio and net stable funding ratio both comfortably above the regulatory minimum," he adds.
